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What is the story about?
Benchmark indices on Wall Street had a mixed session on Friday as investors digested a deluge of economic data, including the November non-farm payrolls.
The Dow Jones ended with losses of over 300 points and are now down over 800 points from last Friday's record high level of close to 49,000. The index, at the day's low was down nearly 500 points, before a minor recovery. The S&P 500 ended lower for the third straight day.
On the flip side, Tesla shares ended at a record high on Tuesday, which contributed to the recovery in the Nasdaq. The index ended above the flat line on Tuesday with gains of nearly a quarter of a percent. Most of the other big tech names did not see major buying interest, but did not sell-off either, as was the trend over the last three sessions.
The US economy added 64,000 jobs for the month of November, higher than the estimates, which ranged between 45,000 - 50,000. The unemployment rate though, rose to 4.6%, the highest in four years. The delayed non-farm payrolls figure for October was a negative 1.05 lakh, mainly due to the furloughs during the longest government shutdown in US history.
Economists believe that the data is not going to be a major indicator for the Federal Reserve as it comes amidst the shutdown. A more reliable indicator will be the December jobs report, which will be released in a couple of weeks from now.
The jobs report did little to change the odds of no rate cuts during the Fed's next meeting in January. The CME FedWatch still prices in a 75% probability of a status quo policy when the Fed meets next on January 28.
US retail sales, excluding automobiles were better than expectations on a month-on-month basis.
"We take a glass half full rather than a glass half empty view of the combined part-October, full November employment report and, more importantly, we think the Fed will too,” said Krishna Guha at Evercore. “Specifically we do not think this was weak enough to spur another near-term rate cut."
US crude oil prices fell below the $55 per barrel mark for the first time since February 2021, as supply concerns, coupled with the probability of a resolution of the Russia-Ukraine war, contributed to the decline in prices.
All eyes will now be on Thursday's retail inflation figures, which will be released along with the jobless claims for the week.
The Dow Jones ended with losses of over 300 points and are now down over 800 points from last Friday's record high level of close to 49,000. The index, at the day's low was down nearly 500 points, before a minor recovery. The S&P 500 ended lower for the third straight day.
On the flip side, Tesla shares ended at a record high on Tuesday, which contributed to the recovery in the Nasdaq. The index ended above the flat line on Tuesday with gains of nearly a quarter of a percent. Most of the other big tech names did not see major buying interest, but did not sell-off either, as was the trend over the last three sessions.
The US economy added 64,000 jobs for the month of November, higher than the estimates, which ranged between 45,000 - 50,000. The unemployment rate though, rose to 4.6%, the highest in four years. The delayed non-farm payrolls figure for October was a negative 1.05 lakh, mainly due to the furloughs during the longest government shutdown in US history.
Economists believe that the data is not going to be a major indicator for the Federal Reserve as it comes amidst the shutdown. A more reliable indicator will be the December jobs report, which will be released in a couple of weeks from now.
The jobs report did little to change the odds of no rate cuts during the Fed's next meeting in January. The CME FedWatch still prices in a 75% probability of a status quo policy when the Fed meets next on January 28.
US retail sales, excluding automobiles were better than expectations on a month-on-month basis.
"We take a glass half full rather than a glass half empty view of the combined part-October, full November employment report and, more importantly, we think the Fed will too,” said Krishna Guha at Evercore. “Specifically we do not think this was weak enough to spur another near-term rate cut."
US crude oil prices fell below the $55 per barrel mark for the first time since February 2021, as supply concerns, coupled with the probability of a resolution of the Russia-Ukraine war, contributed to the decline in prices.
All eyes will now be on Thursday's retail inflation figures, which will be released along with the jobless claims for the week.
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